Warnings that index funds have broken the stock market all imply a threshold: a share of the market at which price discovery fails. Nobody making the argument names it. Owen Lamont, writing in the Financial Analysts Journal, argues that no such number exists short of complete passive ownership, and that what actually determines whether prices stay informative is who is left doing the trading. His case, the strongest peer-reviewed research against it, and what the performance
Decades of research show that reliably spotting market bubbles before they burst is nigh on impossible. Despite warnings from experts, academic studies confirm market timing strategies consistently fail for most investors. Attempting to time markets leads to missed gains , higher transaction costs , and emotional stress. Instead, focus on diversification , controlling costs , and planning for volatility. The best defence against bubbles is preparation, not prediction.
TEBI
Jun 24, 20257 min read
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